Apple CEO Steve Jobs discusses iPhone 4's reception issues

David Paul Morris/Getty ImagesSteve Jobs, CEO of Apple Computer Inc., speaks during a press conference regarding the Apple iPhone 4 reception problems at the Apple headquarters, July 16, 2010 in Cupertino, California. Jobs announced that Apple will provide customers with cases at no additional cost to help solve the reception problems and refund customers who have already bought the apple bumpers until Sept. 30, 2010.

Apple CEO Steve Jobs took the stage at his company’s Cupertino headquarters today to respond to complaints about the new iPhone 4.

Jobs said the company will give a free bumper case to buyers of every iPhone 4 through Sept. 30.

Apple will tap cases made by third-party providers because Jobs said the company can’t make enough. Users will be able to order them online starting next week. "Pick a case — zoom, we’ll send it off to you," Job said.

The event followed a Monday review by Consumer Reports that, while declaring the iPhone 4 the best smart phone on the market, recommended that readers not buy it because of the reception problem.

Numerous iPhone 4 owners say they cannot make or receive calls if their hand covers the lower left corner of the device’s antenna — a hold facetiously known as the "death grip." Calling the situation "Antennagate," Jobs said the company has been "working our butts off" the past 22 days to figure out what the underlying problem is.

He began the presentation with a defense of the iPhone 4 while admitting "we are not perfect." Showing a video of other smart phones being held as signal strength drops, he said: "Most smart phones behave exactly the same way. This is life in the smart phone world — phones are not perfect. And it’s a challenge for the whole industry. Every phone has weak spots."

Jobs detailed the $100 million of research the company put behind antenna research. "We knew if you grip it a certain way, the bars would go down — just like every smart phone. We didn’t think it would be a problem."

He said very few users have complained about the iPhone 4 antenna.

About "one-half of one percent — 0.55 percent" have called the company’s Apple Care service for help regarding this issue. "Historically for us, this is not a large number. This does not jibe with what you read about this."

He also said there have been less than a third of the returns for the iPhone 4 than for the previous model, the iPhone 3GS.

Job released data on iPhone 4 calls dropped per 100 calls compared with the same for the iPhone 3GS. It actually drops more calls than the iPhone 3GS — an increase of "less than one additional call per 100," he said.

"This does put it into perspective. I have my own pet theory of this: When the iPhone 3GS came out, we did not change the design. There was a healthy number of cases available — 80 percent of customers walked out of the store with a case. IPhone 4 is a radically new design. In our stores, 20 percent are walking out with cases."

Moments before the conference began, the auditorium was about half-full — indicative of how selective Apple was in inviting reporters and a handful of analysts.